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Tax Analysis Posted June 22, 1998 The search for your $52.8 million by David Arnett
During the Tulsa Project, officials claimed the Hotel Tax was not really a tax because outsiders paid the bill, but these funds are collected within the city and it is Tulsa money. Off the top, two percent is deposited into the General Fund of the City of Tulsa as a bookkeeping and enforcement fee. To date, that two percent totals over one million, fifty-six thousand dollars. The next 38.4 percent goes to the Economic
Development Commission Fund. That total to date is $20,275,821 and it
is spent by the Economic Development Commission (EDC) a non elected group of
so-called civic leaders. However, there is a great amount of detail missing from public records in regard to EDC's $20 million. Prior to 1988 there are no contracts between the City of Tulsa and EDC on file with the City Clerk. Even today, the contract for services is not with EDC, but between the City of Tulsa and the Metropolitan Tulsa Chamber of Commerce. The Chamber of Commerce provides staff for
EDC and receives an administrative fee for that effort. Chamber staff
prepares promotional expenditures for EDC to fund (brochures, marketing trips
throughout the world, public relations activities, advertising, etc.).
In a special investigation by Tulsa Today, the only existing
contracts for this money were reviewed and the yearly totals are listed
below.
In summary of these contracts alone, the Chamber of Commerce has earned over $6.4 million for spending over $9.7 million of our tax money. It is apparent that an administration fee has also been paid by the City to the Chamber of Commerce during the years from 1981 to 1987, but records of that tax money are not available from any City department. Tulsa Today made several specific requests. City officials did search current and stored records, but could not produce the requested documentation. When pressed, officials suggested that the vendor (Chamber of Commerce) would keep duplicate records. Metropolitan Tulsa Chamber of Commerce spokesman Chris Metcalf received the same request for information as city officials for the missing years and, after consultations with other senior Chamber of Commerce officials, provided the following information.
These amounts were identified as "Funds from City of Tulsa for Economic Development Commission" and do not appear to include the administration fee. In addition, the figures do not agree with information provided to Tulsa Today by City Auditor Phil Wood. The auditor's office was also unable to break out the administration fee, but did provide the following:
So why are a few missing millions important when the current proposed City budget is a $469 million spending plan? Besides the fact that this is public money, consider that the Chamber of Commerce is a private lobby group with the objective of manipulating public officials and media to accomplish the best interests of their membership. They are not a charity. If a business is not a paid member of the Metropolitan Tulsa Chamber of Commerce, they are not listed in any Chamber of Commerce publication nor considered for business in this community. More importantly in public policy development, staff is power. The larger the staff, the better equipped an organization is to accomplish public policy research, development and promotion. This $810,500 (1997) Chamber of Commerce administration fee pays for staff to support economic development and convention/tourism solicitation -- two important areas for city growth. However, the Tulsa City Council is commissioned for a much larger task of overseeing the operation of government in the nine districts, approving the budget, and serving as the legislative arm of City government. The City Council staff includes 10 positions and the administrative cost was $328,876 in 1997 according to Council Researcher Don Cannon. Administrative Costs 1997 - Taxpayer Funded
The impact of funding levels becomes clear when seen in the light of the current effort by the City Council to hire a budget analyst. Our part-time councilors (earning $1,000 per month for the job) are responsible by City Charter to review and approve an annual budget better weighted by the pound than counted by the page. The Mayor's offices with around 4,000 employees contain approximately 12 qualified budget analysts who work full time to develop the annual budget. Without one budget analyst on staff, the City Council can do little more than rubber stamp the Mayor's figures and, therefore, there is no check nor balance in Tulsa government. The objective in tracking Tulsa's $52.8 million in Hotel Tax revenue is good government. Knowing how much we spend for what functions conducted by which staff is important. With luck, public officials and other public media will add to this Tulsa Today research to discover what was paid to the Chamber of Commerce in the years from 1981 to 1987. No city contract should be beyond public review especially if such an 18 year agreement is with a private lobby group supported by public tax dollars. Tulsa Today Reader Comments as of June 29, 1998
John K. McFarlin
We as taxpayers should require that our elected officials publish an annual report, detailing the collection sources and the disposition of those funds. Of course, we probably would have to have another tax to pay for all of the accountants and lawyers. Maybe they could hire "Bob" from Accounttemps. The city administration perhaps should consider using The city purchasing department to administer contracts like the Metropolitan Chamber of Commerce deal. At least it would have to go out for bids. Deals like this is exactly the reason I voted against the Tulsa Project. Mayor Savage, are you listening? Larry Wilson
Loretta Green
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